Page 529 - ES 2020-21_Volume-1-2 [28-01-21]

156 Economic Survey 2020-21 Volume 1

Particulars No. of Corporates Amount (` Crore)
Process closed mid-way 897 NA NA

Process closed by resolution 308 1,03,270 1,99,511
plan
Process closed for liquidation 1,112 42,362 NA

Ongoing processes 1,800 NA NA
Source: IBBI
Note: *Data on applications withdrawn before admission is maintained by MCA. This data is as of September, 2020.
Table 16: Rescue of distressed assets (as of Dec 2020)

Description Companies Rescued Companies Ordered for
Liquidation

No. of Companies 308 1,112
Aggregate Claims 4,99,928 6,04,574
Aggregate Liquidation Value 1,03,270 43,048
Assets available % of Aggregate Claims 20.65 7.12
Resolution Value 1,99,511 NA

Resolution Value as % of Liquidation Value 193.19 NA
Resolution Value as % of Aggregate Claims 39.91 NA
Average time taken 441 days 328 days
Cost % of Resolution Value 0.42 NA

Source: IBBI and MCA

4.65 In view of COVID-19, the following measures were undertaken by the government:
• The Government increased the threshold amount of default required to initiate an insolvency
proceeding from ` 1 lakh to ` 1 crore in end March 2020.

• The Insolvency and Bankruptcy (Amendment) Ordinance, 2020, inserted section 10A to
suspend initiation of the CIRP of a corporate debtor (CD) under section 7, 9 and 10 for any
default arising on or after March 25, 2020 which was further extended twice for 3 months
each on September 25, 2020 and December 22, 2020.

4.66 Further, various measures were undertaken by judiciary and the regulator, including:
• For the matters already under a CIRP in accordance with the provisions of the IBC, the
Supreme Court suo moto passed an order extending the limitation period for all matters
with effect from March 15, 2020 till further orders.

• The NCLAT, vide order dated March 30, 2020, decided that the period of lockdown
ordered by the Central Government and the State Governments shall be excluded for the
purpose of counting of the period for resolution process under section 12 of the Code, in
all cases where CIRP has been initiated and pending before any Bench of the NCLT or
in appeal before NCLAT. It further ordered that any interim order/ stay order passed by
the NCLAT in any one or the other appeal under the Code shall continue till next date of
hearing.